Regulatory Alerts2022-12-07
Added
SFD Circular No. 07: Green Transformation Fund (GTF) in Taka for Export and Manufacturing-Oriented Industries
The Sustainable Finance Department of Bangladesh Bank establishes a Tk 5,000 crore Green Transformation Fund (GTF) to provide refinancing for the import of eco-friendly capital machinery and parts for export and manufacturing industries engaged in specific green initiatives. Participating banks must sign an agreement with the department and adhere to a maximum customer interest rate of 5%, while borrowers face a maximum loan-to-equity ratio of 70:30 and a per-borrower limit of Tk 20 billion. The fund supports medium-term loans with grace periods up to one year, subject to pre-approval project inspections, quarterly reporting, and strict compliance with risk management and sustainable finance guidelines.